Investment insights from Capital Group
More attractive valuations could present a good entry point for investors
Global investment grade spreads and yields
Data as at 15 June 2022. Index used is the Bloomberg Global Aggregate Corporate Bond Index. The yield-to-worst is the lowest possible return over a particular period of time that can be received on a bond that fully operates within the terms of its contract without defaulting. The option-adjusted spread is the spread that accounts for the embedded optionality of some bonds. Source: Bloomberg
Higher starting yields have boosted returns in the past
Average forward returns (% p.a.) at recent yield levels
Yields as at 15 June 2022. Returns as at 31 May 2022 in US dollar terms. Data goes back to 2000 for all sectors except for emerging markets, which goes back to 2003. Based on average monthly returns for each sector when in a +/- 0.30% range of yield to worst. Indices used (left to right) are Bloomberg Global Aggregate Corporate Index, Bloomberg Global High Yield Index, and 50% JPMorgan EMBI Global Diversified Index / 50% JPMorgan GBI-EM Global Diversified Index blend. High yield: lower quality bonds rated BB or below. Sources: Capital Group, Bloomberg, JPMorgan
1. As at 15 June 2022 in USD terms. Index used is the Bloomberg Global Aggregate Corporate Index. Investment grade: higher quality bonds rated BBB or above. Sources: Barclays, Bloomberg
U.S. Equities
Market Volatility
European Equity
Past results are not predictive of results in future periods. It is not possible to invest directly in an index, which is unmanaged. The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment. This information is not intended to provide investment, tax or other advice, or to be a solicitation to buy or sell any securities.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. All information is as at the date indicated unless otherwise stated. Some information may have been obtained from third parties, and as such the reliability of that information is not guaranteed.
Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.